The Rising Cost of Health Insurance Premiums

Explore how health care spending and health insurance premiums have grown in your state.

Each year health spending by insurers continues to rise. Between 2011 and 2023, health spending grew by an average of $2,246 per insured person.

Our research shows price increases resulting from hospital market power gained through mergers are a major contributing factor to these spending increases.

On average health insurance premiums increase nearly dollar-for-dollar with health insurer spending on medical claims.

For the roughly 175 million Americans who receive insurance through their employer, these premium increases translate to reduced wages and reduced job opportunities outside of the health care sector in their communities. See the research.

On average, private insurance premiums have increased at twice the rate of inflation.

In 2025, the average premium for employer-sponsored coverage for an individual is $9,325 and $27,000 for family coverage. Source.

Most Americans get coverage through one of three types of private insurance markets.

In all of these markets, increases in health care spending are ultimately borne by policyholders (often employees) in the form of higher premiums, higher out-of-pocket spending, lower wages, and fewer jobs. Higher health insurance premiums also reduce tax revenue and increase unemployment insurance expenditures.

Use the interactive below to explore changes in health spending and average premiums by market type for each state.

Explore health spending and insurance premiums by state

Changes in spending and premiums vary by state due to differences in hospital market concentration, local labor costs, and state regulation.

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Average Insurance Premiums vs Average Health Spend by Insurers